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On May 30, a second court ruled that Tae-Won Choi, chairman of SK Group, must pay So-Young Noh, director of the Butterfly Art Center, KRW 138.8 billion in property division and KRW 2 billion in alimony in the event of a divorce.
In the first trial, Choi's shares in SK holdings were not recognized as part of the property division, but the Seoul High Court Family Division 2 ruled that the shares were subject to property division, citing Noh's contributions. As a result, the settlement amount significantly increased, when compared to the KRW 66.5 billion in property division and KRW 100 million in alimony awarded by the first trial in December 2022, making it the largest divorce property settlement known to date.
The Seoul High Court in the appeal ruled that the couple's assets amounting to 4.115 trillion won should be divided in cash, with Chairman Choi receiving 65% and Director Noh 35%. During the process, the court recognized that Director Noh and former President Tae-Woo Noh contributed to the formation and growth of SK Group.
Attorney Jong-Sik Kim from LIN explained that "the court, in its decision, recognized the joint contribution of both parties, not distinguishing between self-generated property and inherited property".
The result of the second trial’s decision in the divorce case between Chairman Tae-Won Choi and Director So-Young Noh exceeded market expectations. While the trillion-won scale of the asset division was unprecedented, the greater shock was the court's acknowledgment of wealth accumulation through slush funds and political-business collusion. For SK Group and Chairman Choi, the pivotal challenge at the Supreme Court will not concern the logistics of disbursing the property division funds. Instead, the focus will be on effectively challenging the logic and reasoning behind the decision of the second trial.
Given the significance of this lawsuit, which could potentially shake the management rights of a global company like SK, it is expected that the Supreme Court will extensively discuss whether it is appropriate to recognize the spouse who primarily handled domestic duties and childcare with a 35% contribution to corporate shares, and whether the previous ruling was made with a bias, lacking clear evidence regarding political-business collusion or slush funds.
Our Wealth Management team at LIN is led by lawyers with extensive experience in family law, and is recognized as a powerhouse in the field of family litigation, including divorce, dissolution of marriage, paternity and recognition, property division, custody disputes, guardianship, wills, inheritance, and estates, and collaborates with experts in various fields such as family law, inheritance, taxation, corporate law, criminal law, international litigation, and trusts to provide the highest quality of legal services in a professional and systematic manner.
Please see below for related articles.
The Korea Economic Daily
View original article▼
"Tae-Won Choi Ordered to Pay 1.4 Trillion Won in Asset Division to So-Young Noh" … The Overturned 'Divorce of the Century'
"Tae-Won Choi Ordered to Pay 1.4 Trillion Won in Asset Division to So-Young Noh" … Virtually Acknowledging 'Political-Business Collusion'
In the first trial, Choi's shares in SK holdings were not recognized as part of the property division, but the Seoul High Court Family Division 2 ruled that the shares were subject to property division, citing Noh's contributions. As a result, the settlement amount significantly increased, when compared to the KRW 66.5 billion in property division and KRW 100 million in alimony awarded by the first trial in December 2022, making it the largest divorce property settlement known to date.
The Seoul High Court in the appeal ruled that the couple's assets amounting to 4.115 trillion won should be divided in cash, with Chairman Choi receiving 65% and Director Noh 35%. During the process, the court recognized that Director Noh and former President Tae-Woo Noh contributed to the formation and growth of SK Group.
Attorney Jong-Sik Kim from LIN explained that "the court, in its decision, recognized the joint contribution of both parties, not distinguishing between self-generated property and inherited property".
The result of the second trial’s decision in the divorce case between Chairman Tae-Won Choi and Director So-Young Noh exceeded market expectations. While the trillion-won scale of the asset division was unprecedented, the greater shock was the court's acknowledgment of wealth accumulation through slush funds and political-business collusion. For SK Group and Chairman Choi, the pivotal challenge at the Supreme Court will not concern the logistics of disbursing the property division funds. Instead, the focus will be on effectively challenging the logic and reasoning behind the decision of the second trial.
Given the significance of this lawsuit, which could potentially shake the management rights of a global company like SK, it is expected that the Supreme Court will extensively discuss whether it is appropriate to recognize the spouse who primarily handled domestic duties and childcare with a 35% contribution to corporate shares, and whether the previous ruling was made with a bias, lacking clear evidence regarding political-business collusion or slush funds.
Our Wealth Management team at LIN is led by lawyers with extensive experience in family law, and is recognized as a powerhouse in the field of family litigation, including divorce, dissolution of marriage, paternity and recognition, property division, custody disputes, guardianship, wills, inheritance, and estates, and collaborates with experts in various fields such as family law, inheritance, taxation, corporate law, criminal law, international litigation, and trusts to provide the highest quality of legal services in a professional and systematic manner.
Please see below for related articles.
The Korea Economic Daily
View original article▼
"Tae-Won Choi Ordered to Pay 1.4 Trillion Won in Asset Division to So-Young Noh" … The Overturned 'Divorce of the Century'
"Tae-Won Choi Ordered to Pay 1.4 Trillion Won in Asset Division to So-Young Noh" … Virtually Acknowledging 'Political-Business Collusion'